December 16, 2019 at 8:43 pm #63254
I’m new to the forum and really appreciate how you all rally around one another to help. This has been an interesting journey so far as I had to change agents and counselors. Recently qualified, but not for as much as expected. So I paid off 2 credit cards and my mortgage counselor resubmitted. I am ready to submit a contract but now I’m waiting to be re-qualified. My PITI will be $1544 and I’m looking at a home that’s $289,000. Going to ask for closing costs to buy-down the interest rate. Unfortunately, I still don’t think it will be enough since the taxes and hoa are kinda high.
I read in the purchase workbook that there are grants that can work with NACA. Apparently Texas State Affordable Housing Corporation (TSAHC) isn’t an option because of the way NACA is set up. Has anyone ever combined any grants for down payment assistance (dpa) with NACA? Also looking into the Mortgage Credit Certification (MCC) but not sure how to do that either. Where can get more info and apply for Texas? Trying to find any funds that can help.December 16, 2019 at 8:49 pm #63255TattedQueen87Member
Following because I’m also in Texas and curious about this.
What area are you in?December 16, 2019 at 9:28 pm #63257December 16, 2019 at 9:31 pm #63258TattedQueen87Member
I’m in Austin also and hoping to buy in N. Austin or Round Rock.December 16, 2019 at 9:38 pm #63259
If you are below 80% of your MSA median income you get an automatic 0.5% interest rate deduction. That’s roughly $50 or 60 off your monthly payment and about $5800 subtracted from the necessary buy down funds in a 289k house. If you meet the criteria.
Typically speaking you can’t combine grants. It is possible however most grants are part of programs so it’s not like a scholarship.
I’m in a state that offers a combo grant: up to 15000 in down payment assistance and an additional 10000 in closing costs for first time homebuyers who buy in pre selected (state determined) neighborhoods. Unfortunately the stipulation is it’s FHA only it won’t work with naca.
Naca knows what they are doing. While it is hard to find grants that work and organizations willing to work with naca to grant you money without going through their own programs the best grant available is actually offered to naca clients through bank of America. It’s as if naca did the research for you. That along with the already absurdly low interest rate the ability to buy down further no down payment and no closing costs and no PMI you are looking at potentially doubling your buying power over more traditional methods.
I wouldn’t sell yourself so short just yet. You can very easily ask for your seller to contribute 5% and that would get your interest rate down as low as you can get it without spending a dime. It would also get your payment down close to 1544.
Just an FYI though. The fact that this house has an hoa fee is what could break the bank. At the moment due to some unforeseen circumstances earlier this year the maximum you are allowed to buy down is 1.25% which is 5 points or 5% of the purchase price. This is a typical request amount. It also means you would not be able to use any grants.
If I were you I would run the numbers yourself before you put an offer in. If it ends up being more than 1544 your MC will block you from moving forward.December 16, 2019 at 9:57 pm #63261
@nelsont thanks for your response. I agree that Naca is providing a fantastic benefit and buying power. It is unfortunately still difficult on a solo salary in a market that has relatively low inventory on homes at a lower cost.
Yes, my agent has been trying to reach the MC to confirm the numbers but no response. I’ve also been trying to contact since Thursday to get questions answered. I came here and read some of the responses to get answers to some of my questions. But still need to connect with the MC. I think they are just overwhelmed at this point. I can only imagine the caseload and the amount of work they’re trying to get done before the end of the month/year. Doing my best to remain patient.December 16, 2019 at 10:19 pm #63262
Your MC by rule will almost never speak to anybody but you unless you have a conversation with them first and they personally tell you they agree to speak with them. It’s a privacy and fraud prevention thing.
Your MC also will usually not respond to questions about affordability. You need to send a property specific letter request in order to get a response. In the request provide the tax sheet the mls listing and all financial information like the asking price the offer price the seller contributions and so on. If you want confirmation from your MC before you do this you might not get it. Whatever numbers you have are the same as what they will come up with.December 17, 2019 at 11:45 am #63279
@nelstont Where would I get a tax sheet and mls listing for a home that has not been completed yet…it’s a new construction home?
This is another question I had for my MC that has not been answered. Is there some place I can find info on the process for new builds since it is different than existing homes?December 17, 2019 at 12:15 pm #63282
Your agent should be have all that info…the mls listing often requires an RE licence to obtain. The process to put in an offer on a new construction is the same. The county will be able to tell you the expected taxes based on the expected value. The differences are that the inspection and appraisal are often done closer to completion.
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